FLORICULTURE AND ENVIRONMENTAL YEARBOOK -- May 24, 2002 May 2002, ERS-FLO-2002 Approved by the World Agricultural Outlook Board --------------------------------------------------------------------------- FLORICULTURE AND ENVIRONMENTAL YEARBOOK is published annually by the Economic Research Service, U.S. Department of Agriculture, Washington, DC 20036-5831. This release contains only the text of the FLORICULTURE AND ENVIRONMENTAL YEARBOOK -- tables are not included. Printed copies of this yearbook will be available from the USDA order desk in about 3-4 weeks. Call toll-free, 1-800-999-6779 and ask for stock # ERS-FLO-2002. ERS-ERS-NASS accepts MasterCard and Visa. --------------------------------------------------------------------------- Summary Floriculture and Nursery Sales Barely Increased in 2001 Grower cash receipts from sales of floriculture and nursery crops continued to rise, but at a much slower pace, reaching $13.3 billion in 2001. Of this amount, close to two-thirds, or 64 percent, are accounted for by sales of nursery crops. The other 36 percent are from floriculture crops. Including net trade, U.S. per household consumption of floriculture and nursery crops was $133 in 2001, or $50 per capita. Total domestic consumption of both crop groups was $14.2 billion in 2001 based on the wholesale value of sales and net imports. The U.S. economic recession in 2001s third quarter left the value of floriculture and nursery crops essentially flat from 2000. After healthy gains in the late 1990s through 2000, when the domestic economy was booming, grower sales of nursery crops declined in 2001. Nevertheless, increased sales of potted flowering plants, foliage plants, and bedding and garden plants boosted overall floriculture sales, offsetting nursery crops decline. Sales of cut flowers also fell in 2001, reflecting their sensitivity to increased unemployment and weak economic activity. Western States Lead U.S. Sales Among the geographic regions of the United States, the Western States were the highest per capita consumers of floriculture and nursery crops. In 2000, per capita sales in Western States were $68. In the next highest, the Southern States, per capita sales were $55. North Central States averaged $30, and Northeast States, $25. Among individual States, Oregon had the highest per capita sales--$191, followed by North Carolina at $123. Florida was third at $97. Based on State shares of U.S. cash receipts from floriculture and nursery sales in 2000, four States--California, Florida, Texas, and North Carolina--accounted for half of total crop value. Three-quarters of total U.S. cash receipts were earned by Western and Southern States. For the United States, consumption per household of floriculture and nursery products in 2000 amounted to $134, more than double 1985s $66 and triple 1980s $44, based on nominal wholesale value. Since 1997, the total number of growers of floriculture crops in the United States has fallen--from 12,717 to 10,965 in 2001. This reflects the steep decline in the number of smaller growers with less than $100,000 in annual floriculture sales relative to the number of large growers. In the size of farming area (both covered and open field), larger growers with more than $100,000 in annual sales increased their average acreage from 46,400 acres in 1999 to 53,700 acres in 2001. In contrast, the total growing area used by smaller growers decreased to an average 8,800 acres in 2001 from 10,200 acres in 1997. These indicate that, in general, floriculture sales by larger operations have increased relative to sales by smaller producers in recent years. Recent Trends Show Greater Demand for Floriculture and Nursery Crops Total floriculture and nursery crop sales increased continuously in the past two decades, as have floriculture crops and nursery crops separately in the past decade. Floriculture crop sales reached $4.7 billion in 2001, and nursery crop sales were $8.6 billion, as represented by grower cash receipts. These are up from only $1 billion and $2.5 billion, respectively, in 1980. Among floriculture crops, only cut flower receipts have declined since the late 1980s. These production declines were more than offset by imports, however, as the dollars exchange rate appreciated. The growth in demand for other floriculture crops and for nursery crops is reflected partly in increased domestic sales, but more so in higher imports, especially of nursery crops. Foreign supply of cut flowers, which comprise about 50 percent of total floriculture and nursery crop imports, is largely from South America, whereas nursery stock is mostly from Canada and the European Union. The significance of imports of cut flowers and nursery stock is reflected in their growth to almost $1.2 billion in 2001 from only $160 million in 1980. Together they represent 3 percent of total U.S. agricultural imports, up from less than 1 percent in 1980. Average imports of these products, including Christmas trees from Canada, are now $11 per household, of which more than $5 are for cut flowers. These are up from only $2 and $1.10, respectively, in 1980. The strength of the dollar and U.S. income growth in recent years underlie the surge in imports. On the other hand, U.S. exports of floriculture and nursery products, while only a fraction of U.S. imports, have declined in recent years as the dollar strengthened and foreign demand weakened. Floriculture crops--U.S. consumption of floriculture crops amounted to $5.5 billion in 2001, up 3 percent from 2000. Preliminary production estimates from grower wholesale receipts were up 3.5 percent, from $4.6 to $4.7 billion. Consumption of flowering, bedding, and foliage plants was $4.5 billion in 2001, compared with less than $1 billion for cut flowers. U.S. floriculture imports were more than $900 million in 2001, but down 3.5 percent from 2000 as the total quantity of imported cut flowers continued to drop from their peak in 1996. The higher exchange value of the dollar is in part behind the decline in import value. The import share of U.S. consumption of floriculture crops was 17 percent in 2001, down from 21 percent in 1996. Without cut flowers, the import share was 7.5 percent. Cut flowers--As prices of imported cut flowers started falling since 1992, imports started to supplant domestic production. U.S. grower receipts began falling even earlier, since 1990. Imports surpassed domestic producer sales in 1995, and the import share of U.S. cut flower consumption is now 60 percent. Cut flower imports make up half of total U.S. imports of floriculture and nursery products. The other half is composed largely of other floriculture crops. Among the major cut flower imports, only roses (hybrid tea) increased in quantity in 2001. While prices of domestic cut flowers were down slightly from 2000, import prices were down sharply, now 14 percent below 1997 prices. The competitiveness of foreign growers stems from lower labor costs, smaller climate-control investments, and their cheaper currencies. Overall prices of cut flowers in 2001 were 6 percent lower than prices in 2000, and 10 percent below 1998 prices. Nursery crops--U.S. consumption of nursery crops in 2001 was down slightly from 2000, from $8.8 billion to $8.7 billion. This is due to smaller domestic production, which fell to $8.6 billion in 2001 from $8.7 billion in 2000. However, the value of imports, whose share of U.S. consumption is only 3 percent, increased 11 percent from 2000. Since U.S. consumption of nursery crops is almost 60 percent larger than floriculture crop consumption, the overall gain in total floriculture and nursery consumption in 2001 was marginal. U.S. nursery crop consumption per household was $81 in 2001, down $3 from 2000, but still $30 bigger than the $51 per household consumption of floriculture crops. Yearbook Notes: The 2002 Floriculture and Nursery Yearbook contains all tables (see PDF file for tables) pertaining to results of the 1998 Census of Horticultural Specialties that appeared in the last Yearbook, which was published in 1999. Many tables pertaining to Floriculture Crops have been renumbered, a few were added, and some were eliminated. Results pertaining to the 2000 Nursery Crops survey are shown in new tables, numbered from 81 to 90. The sequence of table numbers as they pertain to the various sectors is unchanged from the 1999 Yearbook. All data are annual and represent calendar year estimates. Total grower sales according to the Census of Horticultural Specialties in 1997 and the Census of Agriculture in 1992 differ from corresponding estimates by Floriculture Crops because the Census surveyed growers in all 50 States whereas Floriculture Crops covers only 36 major States. The surveys include all growers with at least $10,000 in corresponding sales. Grower cash receipts for the remaining 14 States not surveyed in Floriculture Crops are estimated annually by the National Agricultural Statistics Service (NASS) of the U.S. Department of Agriculture (USDA). A situation and outlook report on floriculture crops will be published by the Economic Research Service in late summer, 2002. Included in the report are an annual series of price indices for the various floriculture crops and groups of crops, as well as a monthly producer price index for florists. The price index for cut flowers is constructed as a weighted average of domestic and import unit values. Projections for 2002 and 2003 will also be provided for key crop and economic indicators, including U.S. gross domestic product growth, real exchange-rate indices for imported cut flowers and nursery stock, and corresponding import values. Further analysis of sales and price trends by crop and by State will likewise be included. Description of Sales and Trade Data Floriculture and Nursery Crops: The statistics in Floriculture Crops are collected from annual surveys of all known growers of floriculture crops in 36 selected States, based on sales previously reported in the Census of Horticultural Specialties. The survey is conducted in questionnaire form by NASS of USDA. The survey covers retail and wholesale sales by crop or product type--i.e., cut flowers, potted flowering plants for indoor and patio use, herbaceous perennials, annual bedding/garden plants, foliage plants (in pots and baskets), cut cultivated greens, and propagative floriculture material and unfinished plants. Both the quantity sold and value of sales are reported for each crop. Only commercial growers with $10,000 or more in gross value of floriculture sales are included in the survey. Selected Hawaiian crop data are also reported. Additional sales data are collected for various sizes or container types (e.g., flats, pots less than 5 inches tall, pots 5 inches or more, or hanging baskets). Growers are asked to provide data about the area used for crop production--i.e., the type and size of greenhouse cover. The number of hired workers on the payroll on any one day of the year is also reported. Excluded are workers employed only for the retail operation, landscapers, and nonpaid family members. States with a limited number of operations reporting an item are suppressed to avoid disclosing individual information. The 1998 Census of Agricultural Specialties was conducted by NASS. The 1992 survey was part of the Census of Agriculture. Previous censuses in 1988, 1979, and 1970 were conducted by the Bureau of the Census of the U.S. Department of Commerce. The census includes sales of growers with $10,000 or more in horticultural specialty product sales during the census year. The 1998 census includes producers of floriculture, nursery, and other specialty crops, such as sod, mushrooms, food crops produced under glass or other protection, transplants for commercial production, and seeds. Growers in all 50 States were surveyed as part of the Census of Agriculture and are the same growers surveyed in Floriculture Crops. The next Census will be conducted in 2004/2005. Data from Nursery Crops are obtained also by questionnaire from NASS. The first Nursery Production Survey was conducted for the year 2000 to supplement the more comprehensive Decennial Census of Horticultural Specialties conducted by NASS. All known growers in 17 selected States were included in the survey, based on sales reported in the Census of Horticultural Specialties. The nine nursery plant categories in the survey are broadleaf evergreens, coniferous evergreens, deciduous shade trees, deciduous flowering trees, deciduous shrubs and other ornamentals, fruit and tree nut plants, cut and to-be-cut Christmas trees, propagation material or lining-out stock, and transplants for commercial truck crop production. Only commercial growers with $10,000 or more in nursery sales are included in the survey. The next survey of nursery crops will be in 2004/2005. Crop production estimates are based on producer cash receipts which are the value of sales at the farm gate. Most producers, or growers, act as wholesalers to buyers, who are usually retailers. However, a small portion of crops may be sold directly to consumers, in which case grower sales are classified as retail, not wholesale. Crop prices are estimated from unit values of crop sales divided by quantity sold. Domestic prices pertain only to U.S.-grown crops. A composite price index for floriculture crops is a weighted average of domestic and import unit values, reflecting both U.S. and foreign production costs. Prices of each variety of cut flowers, flowering plants, and bedding plants can be computed from their respective tables of annual sales values and quantities sold. Summary price tables will be available in a subsequent report. U.S. Trade: The source of import and export data for floriculture and nursery crops is the trade database of the Foreign Agricultural Service of USDA www.fas.usda.gov/ustrade). The U.S. Bureau of the Census compiles the trade data. Import values include cost, insurance, and freight (c.i.f.), representing the landed value of the merchandise at the first port of arrival in the United States. C.i.f. values exclude import duties. U.S. export values are free alongside ship (f.a.s.), which represents the transaction price, including inland freight, insurance, and other charges incurred in placing the merchandise alongside the carrier at the U.S. port of exportation. F.a.s. values exclude the cost of loading the merchandise aboard the exporting carrier and also exclude freight, insurance, and any charges or transportation costs beyond the port of shipment. Floriculture and nursery trade data are divided into 4 groups, each classified by a 4-digit code: U.S. harmonized tariff system codes 0601, 0602, 0603, and 0604. Each crop group is further reclassified into 6-digit subgroups, then 10- digit-coded products. Import data from FATUS (Foreign Agricultural Trade of the United States) are divided into cut flowers and nursery stock, while exports are grouped in nursery and greenhouse products. All import and export values and quantities are available for years 1989 to date. Description of Crop Groups Annual bedding and garden plants: Include plants in flats, pots, hanging baskets, and herbaceous perennials. Excludes plants used in commercial vegetable production. Starting in 2000, begonias, geraniums, impatiens, marigolds, pansy/viola, and petunias are included. Cut flowers: Starting in 2000, include standard carnations, roses, pompon chrysanthemums, gladioli, tulips, orchids, lilies, alstroemeria, delphinium and larkspur, gerbera daisies, iris, lisianthus, and snapdragons. Floriculture crops: Include bedding/garden plants, cut cultivated greens, cut flowers, potted flowering plants, foliage plants, and propagative floriculture material. Foliage plants: Finished plants in pots or hanging baskets for indoor or patio use; not intended for landscape use. Herbaceous perennials: Field-grown plants, including hardy/garden chrysanthemums, hosta, and other herbaceous perennials. Unfinished plants are excluded. Nursery crops: Include broadleaf evergreens, coniferous evergreens, deciduous shade trees, deciduous flowering trees, deciduous shrubs and other ornamentals, fruit and nut plants for home use, cut and to-be-cut Christmas trees, and propagation material or lining-out stock. Potted flowering plants: Plants for indoor or patio use only, including plants grown from bulbs. Plants intended for landscape use are excluded. Starting in 2000, African violets, azaleas, chrysanthemums, Easter lilies, orchids, poinsettias, roses, and spring bulbs are included. Production area: The gross physical space used for plant propagation, including aisles and walkways, in open ground or covered by greenhouses made of glass, fiberglass, film plastic, or shade and temporary cover. Propagative material: Include cuttings, liners, plug seedlings, prefinished plants, or tissue cultured plantlets. Plants sold to other growers for further growing-on are also included. Wholesale value of sales: The value of all crops grown then sold on a gross wholesale basis before deductions for sales commissions, transportation costs, and other similar charges. Abbreviations: ERS: Economic Research Service, USDA. FAS: Foreign Agricultural Service, USDA. FATUS: Foreign Agricultural Trade of the United States, the trade database of FAS. NASS: National Agricultural Statistics Service, USDA. END_OF_FILE